Which of the Following Is NOT a Relevant Cash Flow

question 48

Multiple Choice

Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project?

• A) Changes in net working capital.
• B) Shipping and installation costs.
• C) Cannibalization effects.
• D) Opportunity costs.
• E) Sunk costs that have been expensed for tax purposes.

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Definitions:

Workplace

An environment, physical or virtual, where employees perform tasks or services in exchange for compensation, under the direction of an employer.

Information Revolution

A period marked by the rapid shift from traditional industry to an economy based on information technology, profoundly influencing how information is created, distributed, and consumed.

Nature of Work

Refers to the inherent characteristics, requirements, and responsibilities of a job or profession.

Physical Space

The tangible and physical environment or area in which objects and activities occur and interact.